- The federal government’s $7,500 electric vehicle (EV) tax credit ends at midnight
- General Motors and Ford may have found a way to extend it for some who want to lease an EV
The federal government’s $7,500 electric vehicle (EV) tax credit sunsets today, September 30, 2025, disappearing at midnight. However, two of the largest domestic automakers may have found a way to continue the program for another quarter, according to a new report.
Industry publication Automotive News reports that both General Motors and Ford “are using their financing arms to offer the incentive beyond its September 30 expiration by making down payments on the vehicles before finding customers to lease them.”
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AN cites “people with knowledge of the automakers’ plans” and says it has seen internal documents confirming the program.
It takes advantage of a sort of loophole. The IRS has allowed some flexibility with timing. If a buyer enters a binding contract to purchase or lease a car and makes a down payment before the credit expires, they can claim the credit now even if they don’t take possession of the car until later.
“Under GM’s program, GM Financial will acquire the qualifying EVs by September 30 and make down payments that will enable the $7,500 incentive to pass through as a lease into the fourth quarter, a person with knowledge of the plan said.”
Ford, meanwhile, “is offering dealers a $1,000 incentive for each vehicle leased through its program by year end.”
GM confirmed the program in a statement.
That approach would not allow lessees to claim the credit on their own taxes but would cut the price of the leased car by $7,500.
